You might consider taking out a secured card now. It is the least likely to get closed and that has a high probability of happening. This will help keep your scores high and speedd dup your recovery after the house is foreclosed.
While what you are facing is bad and I wish it was otherwise, posting your experiences through this could be enormously helpful to others. We almost only get to see the recovery process and most people recovering hadn't planned on what they would do before that. You have a chance to minimize the damage and explain that to others. It's really a very nice and valuable gesture.
@JagerBombs89 wrote:
@cashnocredit wrote:You might consider taking out a secured card now. It is the least likely to get closed and that has a high probability of happening. This will help keep your scores high and speedd dup your recovery after the house is foreclosed.
While what you are facing is bad and I wish it was otherwise, posting your experiences through this could be enormously helpful to others. We almost only get to see the recovery process and most people recovering hadn't planned on what they would do before that. You have a chance to minimize the damage and explain that to others. It's really a very nice and valuable gesture.
Thanks for bringing up this point. I thought there was a law passed that prohibited creditors from implementing adverse action based on derogatories from other companies? (Example: Chase closing out all your cards if you defaulted on American Express) Any insight would be great.
On a second thought, do you think it would be beneficial to call my creditors to give them a heads up and see if they will react? 3 cards have been open for 5-7 years without ever missing a payment or being late, 2 cards for 4 years, and 1 card for 1 year.
Nope. The CARD act did prohibit universal default but creditors can and do close accounts if other accounts are sufficiently negative like they have always done. What was prohibited was interest rate jacking on existing balances or using a default on other cards to declare a default and accelerate a balance on good accounts.
As for a "heads up" I wouldn't do that. Just continue to pay them. There is something called "strategic default" where people typically have sterling credit but stop mortgage payments becuase they are way underwater on their home. That isn't precisely your case but it will look like that to the analyst. These people typically will pay their credit cards. This is reversal of conventional wisdom where they see any sign of a late mortgage as indicating you are in over your head on all debt. As a result of this change in behavior you may be better off than had you done this in 2005.
@JagerBombs89 wrote:I have updated my first post as I got an update with EQ and TU with the 30 day late reporting. TU08 took a 124 point hit and EQ04 took a 93 point hit. Waiting on Amex to update my EX08 score so I can post those results as well.
You're one of the lucky ones with access to the Amex FICO score? Did it get confirmed as EX 08?
Anyway I do appreciate your posting your score changes as the lates come rolling in... crappy situation and that 100 point hit for a new 30 day late is pretty brutal.
Yea got access to Amex FICO in November. Per the disclaimer: "The FICO® Score we provide is the FICO® Score 8 based on data from Experian and may be different from other credit scores."
According to FICO, a person with a 780 will drop to around 650 with a 90-day late and a 620 with a foreclosure. Curious to see if that still holds true.
